According to a report, the decline was driven primarily by the display segment, which accounted for two-thirds of the total decline on an absolute basis. The quarter’s decline represented a moderation from Q1 2018’s -13.6% YoY.

“As such, our current 2018 estimate for a 12% decline in print revenue might have to be revised downwards by at least 2 ppt. We look to Q2 2018 print revenue falling below the $100m level as an affirmation of this,” she added.

Wei also noted that a re-rating of SPH’s share price like its US-listed peers appears unlikely. “The recovery at its peers, such as The New York Times (NYT US), has been driven by a fundamental recovery in both circulation and advertising revenue. Since Q1 2017, NYT has seen an average quarterly growth of 57% in digital subscriptions, which has resulted in overall circulation revenue rising 11-19%. This has arrested the 1-9% decline in advertising revenue, driving overall revenue growth.”

“The same cannot be said for SPH,” she said, “which continues to see flat circulation revenue in spite of increased digital subscribers amid a backdrop of a continued decline in advertising revenue.”

SPH is still looking for a stronger solution to its media disruption, to which management stated that it plans to roll out new products. For the first quarter of 2018, Singapore Press Holdings' (SPH) revenue for its media segment continued to fall 13.9% YoY, led by a decline in display, classifieds, magazines and circulation.

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